The groundbreaking Niger-Benin pipeline, with a capacity of 110,000 barrels per day (b/d), has been completed.
This pipeline is expected to boost Niger’s crude production fivefold, transforming it into a major exporter.
The initial shipment of crude oil was anticipated to be exported in January, as announced by the military leader of the country, Abdourahamane Tiani, via state television.
However, reliable sources said the inaugural shipment from the pipeline may occur as soon as April, according to S&P Global Commodity Insights.
The relaxation of sanctions on junta-led Niger by the Economic Community of West African States (ECOWAS) in February, seven months after a military coup, allowed China National Petroleum Corporation to complete construction of the 2,000 km pipeline and crude was flowing through the conduit last week, sources said.
Benin is part of the ECOWAS regional bloc which placed sanctions on Niger, preventing important equipment from crossing the border between the two countries. This led to delays in the completion of the Niger-Benin pipeline project, with some pump stations awaiting the arrival of equipment held up in Benin.
However, on February 24, the ECOWAS bloc, largely influenced by Nigeria, announced the easing of sanctions for humanitarian reasons.
This decision ended restrictions such as the no-fly zone, border closures, and financial constraints on state assets, including Niger’s state-owned Sonidep.
Landlocked Niger produces 20,000 b/d of crude from its Agadem Rift Basin, which is primarily used domestically due to the lack of an export route, but that is set to rise to 110,000 b/d thanks to the Chinese-built pipeline, which connects Koulele in Niger’s oil fields to the Beninese port of Seme.
Sources said the pipeline will commence operations at 90,000 b/d before gradually increasing to its full capacity of 110,000 b/d.
Storage tanks in Benin are being filled in preparation for the inaugural crude lifting, expected in late April or early May.
